RISK WARNINGS AND REGULATORY STATUS

Regulatory Status and Disclaimer

The ECU Group plc ("ECU") is registered in the United Kingdom and is authorised and regulated by the Financial Conduct Authority ("FCA"). Under current legislation, ECU understands that our management service in respect of physical multi-currency load facilities is a not a "regulated activity" as defined by the Financial Services and Markets Act ("FSMA") 2000, and therefore falls outside the jurisdiction of the FCA. Accordingly, in this instance, you will not therefore benefit from the protections of the FCA, the Financial Ombudsman Service in respect of complaints and the Financial Services Compensation Scheme in respect of compensation in the event of ECU's default. However, it is also our understanding that any currency management service provided by ECU in respect of accounts that incorporates the use of margin trading, futures, options, derivatives or any other transactions that are determined as being an "investment of a specified kind" under the FSMA 2000 is deemed to be a "regulated activity" as defined by the FSMA 2000. Accordingly in these instances, our management services shall fall within the jurisdiction of the FCA, the Financial Ombudsman Service and the Financial Services Compensation Scheme.

ECU does not provide mortgage or general investment advice to "retail clients" and it is recommended that any prospective retail client obtain independent advice from a qualified independent financial adviser. ECU's services to its Managed Currency Account clients comprise the management of assets held in individual client accounts that are administered by FCA-regulated Account Providers. As part of its client acceptance process, ECU conducts thorough suitability assessments on prospective clients in accordance with FCA rules. In addition, ECU may agree to provide investment advice to its clients but such advice will be limited to ECU's products. Should a prospective ECU client require whole of market advice, it is recommended that the advice of an appropriately qualified independent financial adviser should be obtained.

This material is issued and has been approved by ECU and is produced for information purposes only and does not constitute (a) an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever; or (b) any investment advice. Opinions included in this material constitute the judgement of ECU at the time specified and may be subject to change without notice. ECU is not obliged to update or alter the information or opinions contained within this material. Investors should consult their own legal and tax advisers in respect of legal, accounting, domicile and tax advice prior to investing in any financial instruments mentioned herein in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Please note that different types of investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may be either suitable, appropriate or profitable for a client or prospective client’s investment portfolio. Given the economic and market risks, there can be no assurance that any of the financial instruments or strategies mentioned in this document will achieve its/their investment objectives. Returns may be affected by, among other things, interest rates and general market conditions. The different strategies applied to financial instruments may have a sizable effect on the results portrayed in this material.

Managed margin FX accounts

A managed margin FX account is only suitable for sophisticated investors. A client must ensure that they fully understand the additional risks involved in margin trading.
A client should be aware that their bank will require additional margin to be paid on demand and will have the right to close any open positions if this additional margin is not promptly paid.
As with all margined products it is possible to incur significant losses and to lose more than the margin in the account at any one time.

Managed multi-currency mortgages

At no stage should a client be exposed to the high risks of foreign currency borrowings if they are unable to afford the potential losses that could result from adverse currency movements and the higher interest costs that would arise from having a larger loan.
A client's lender will not tolerate an increase in the GBP value of a client's loan above a predetermined level as a result of currency losses. The lender will agree a "Conversion Limit" with the client before a client takes out an ECU managed multi-currency loan. If the loan reaches or breaches its "Conversion Limit", the lender may exercise its right, but not its obligation, to convert the loan back into GBP. However, a loan may be converted back into GBP at a worse level than the agreed Conversion Limit. This would mean that a client's loan would increase by more than it would if it had been converted at the agreed Conversion Limit. Converting a loan back into GBP may result in a permanent increase in the GBP value of a client's loan and the associated GBP interest costs.
The FCA risk warning is "Your home may be repossessed if you do not keep up repayments on a mortgage".

Managed multi-currency loans

At no stage should a client be exposed to the high risks of foreign currency borrowings if they are unable to afford the potential losses that could result from adverse currency movements and the higher interest costs that would arise from having a larger loan.
A client should be aware that their lender may not tolerate an increase in the base currency value of a loan if it exceeds a certain level and will have the right to convert the loan back into the base-currency.

Other Important information

The distribution of the information contained in this website in certain jurisdictions may be restricted by law, including but not limited to the United States or US persons (as defined in Regulation S under the US Securities Act 1933). Accordingly persons who are not resident in the UK and who access this website should inform themselves of and to comply with any such restrictions.

The provision of the information in this web site does not constitute an offer of securities to any person in the United States or to any U.S. Person as such term is defined under the Securities Act of 1933, as amended. The information contained in this site about ECU Group and/or any of its affiliates is not directed to any person in the United States. Funds referred to herein are neither registered under the Securities Act 1933 of the USA, nor are they registered under the Investment Company Act of 1940. Consequently, they cannot be offered for sale or be sold in the USA, its territories, possessions or protectorates under its jurisdiction, nor to nationals, citizens or residents in any of those areas.

This website is maintained by ECU and is being issued inside and outside the United Kingdom by ECU for information purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any investments or financial instruments or to participate in any particular trading strategy in any jurisdiction in which such an offer or solicitation would violate applicable laws or regulations. ECU may not respond to requests for information or further assistance if, in the opinion of ECU, such action might be illegal or contravene any rule or regulation of any jurisdiction.

The views and foreign exchange and interest rate information in this website are based upon information from sources which we believe to be reliable but they are not guaranteed as to their accuracy or completeness. Expressions of opinion herein are subject to change without notice and represent ECU's own view and should not be taken as advice or recommendation. Any contractual obligation between ECU and its clients will only be on the basis of undertakings contained in an ECU client agreement executed by both ECU and the client, as may be amended from time to time by ECU, and which may vary from any information contained herein. Products and services may be subject to material changes at any time from the information herein. ECU aims to ensure that all information herein is accurate at time of printing, but does not accept any responsibility for its accuracy.

Telephone calls with ECU may be recorded for compliance and training purposes. This website is protected by copyright, and no part of it may be reproduced without the express written consent of ECU.

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